Financial institutions still use the annual interest rate of 36% as the basis for judging usury, and more than 36% belong to usury. Private lending is a kind of civil behavior which is bound and protected by civil law and contract law. However, Article 680 of the Civil Code stipulates: "If the loan contract between natural persons stipulates the payment of interest, the loan interest rate shall not violate the provisions of the state restricting the loan interest rate".
1. In the Supreme People's Court's Law on Several Issues Concerning the Application of the Provisions in the Trial of Private Lending Cases, the interest rate shall not exceed the annual interest rate agreed by both parties, and the lender has the right to require the borrower to pay interest at the agreed interest rate; However, if the interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, the part exceeding the annual interest rate of 36% shall be deemed invalid. According to the provisions of Article 26, the people's court shall support the Supreme People's Court in trying private lending cases where the interest rate stipulates that the borrower and the borrower pay interest at the agreed interest rate.
2. The interest rate agreed by both parties exceeds the annual interest rate of 36%, and the interest rate agreement exceeding the part is invalid. The people's court shall support the borrower's request to the lender to return the interest paid at an annual rate exceeding 36%. Usury is illegal, but generally usury is solved through litigation, which is not within the scope of reporting. Private lending is a kind of civil behavior which is bound and protected by civil law and contract law. However, Article 2 1 1 of the Contract Law stipulates: "If the loan contract between natural persons stipulates to pay interest, the loan interest rate shall not violate the provisions of the state that restrict the loan interest rate".
3. According to Article 26 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, if the interest rate agreed by the borrower and the lender does not exceed 24% per annum, the people's court shall support it. The interest rate agreed by both parties exceeds the annual interest rate of 36%, and the interest rate agreement that exceeds it is invalid. The people's court shall support the borrower's request to the lender to return the interest paid at an annual rate exceeding 36%.